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Metalla Royalty & Streaming has busy first quarter; consolidates Nova Scotia asset streams

St Barbara got its hands on the Fifteen Mile Stream project via its takeover of Atlantic Gold in July this year

Metalla Royalty and Streaming Ltd -
Metalla added a key royalty on Fifteen Mile Stream (FMS) expanding its coverage over the entire project, the group told investors

Metalla Royalty & Streaming Ltd (CVE:MTA) (OTCMKTS:MTAFF) reported on a busy first quarter to end August, which saw it consolidate its ownership on St Barbara's Fifteen Mile Stream (FMS) deposit in Nova Scotia and pay down US$2 million worth of loans.

The latter (St Barbara) bought FMS via its takeover of Atlantic Gold in July this year and Metalla purchased a 3% net smelter royalty on the Plenty deposit and Seloam Brook prospect for C$2 million, as announced in August. It already held a 1% NSR on the project.

READ: Metalla Royalty & Streaming calls 2019 a transformational year as the precious metals company boosts asset portfolio

This week, St Barbara put out positive drill results from FMS, which showed mineralization was extended west of the resource within Seloam Brook.

"In fiscal Q1, we added a key royalty on Fifteen Mile Stream (FMS) that expands our coverage over the entire project with additional ground along strike to the southwest of the resource base," Brett Heath, the president and CEO of Metalla, told investors.

"Additionally, we already see very positive drill results with the discovery at Seloam Brook, which is on the newly acquired royalty claims. Further, confirmatory drill results at the 149 zone and between Hudson and Egerton continues to show the potential of significant resource growth at FMS over the next year."

Metalla enjoys a large portfolio and has bought 45 royalties/streams in diversified jurisdictions around the globe, ranging from Australia, Chile and Mexico.

Key assets are a stream on 100% of silver from the Endeavor mine in Australia run by CBH Resources Ltd, 2% NSR (net smelter royalty) at the Joaquin mine in Argentina where the operator is Pan American Silver. It also has a 1% NSR at the COSE mine also run by Pan American. Metalla also enjoys a 2% NSR at the Santa Gertrudis property run by major Agnico Eagle.

Pushed into Q2

Heath said that output at Endeavor had been in line with the revised schedule from CBH Resources for the quarter, but concentrate shipments were pushed into Q2 due to a planned bulk shipment in October which resulted in Q1 revenue from the mine to be realized in Q2.

"Exploration success at Agnico Eagle's Santa Gertrudis and El Realito deposits continue to expand the resource base with further drilling and expected updated resource estimate in February 2020," added the company boss.

In the three months to August 31, Metalla said it recorded cash flow from operating activities, before net change in non-cash working capital items, of C$113,079 (2018: C$1,322,771), offset by $542,698 spent on acquisitions of net smelter royalty interests, resulting in positive working capital of C$7,082,614 (May 31, 2019: $862,799)

The period also saw Metalla draw down on an initial advance of C$7 million on its convertible loan facility with Beedie Capital after it struck a C$12 million convertible debt facility.

Shares ticked up 3.57% in Toronto to stand at C$1.45 each. 

---Updates for share price---

Contact the author at [email protected]

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Price: 1.73 CAD

TSX-V:MTA
Market: TSX-V
Market Cap: $233.83 m
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